PaySauce Quarterly Market Update – June 2021

PaySauce processes over 50% more payroll
Lower Hutt, New Zealand - 8 July 2021
Employment fintech PaySauce (NZX:PYS) finished thefirst quarter of FY22 with
accelerated customer and revenue growth.
PaySauce acquired the business and assets of SmoothPayduring the quarter.
PaySauce is in the process of transitioning the accountingpolicies and reporting
metrics of SmoothPay to ensure consistency with thosereported by PaySauce.
PaySauce will include the business metrics of theSmoothPay business in the
PaySauce quarterly update in September. None of themetrics in this update
include any of the business operations of SmoothPay.
Processing fees from customers grew 44% YoY, up fromthe 42% YoY increase in
the quarter to March. The growth in processing feeshas arisen from both a 39%
increase in customer numbers and a 51% YoY increasein the value of payroll
processed through the PaySauce platform compared tothe quarter to June 2020.
Total recurring revenue for the June 2021 quarterincreased 36% YoY. This measure
includes both processing fees and interest income.The continued low interest
rate environment has caused interest income to decline33% YoY. At $31k, interest
revenue was just 5% of the total Recurring Revenuethis quarter (June 2020
Quarter: 10%; $46k) despite the float of funds heldon behalf of customers
increasing in line with customer growth.
The number of employees paid through the PaySauceplatform increased 44%
YoY to over 20,000. CEO and co-founder Asantha Wijeyeratne,said the growth in
employees demonstrates the evolution from an agri-focusedpayroll provider to
an industry agnostic fintech.
“More and more larger employers are coming to PaySauceto help them run the
people-side of their business. Businesses in the constructionand hospitality
sectors in particular are seeing the value of staffentering their timesheets on
their app and payments being automated when the payrun closes. By making it
easy, we free them up to spend their time where itmatters - running their
business.“
“For me, the most pleasing element is seeing 20,000employees on our platform.
Having introduced PayNow this quarter, knowing thatthose employees can
access their earned wages before payday with no costsmeans we can make a
real difference to those currently using predatorypayday lenders.”

F21 Q4 Key Metrics (1 of 2)
F22 Q1F21 Q1Change
Results for the quarterApr - Jun ‘21Apr - Jun ‘20% YoY
Total recurring revenue$612K$450K36%
# Payslips processed144k99k44%
Gross value of payroll
processed
$240M$158M51%

F21 Q4 Key Metrics (2 of 2)
F22 Q1F21 Q1Change
Position at quarter end30 Jun ‘2130 Jun ‘20%YoY
# Employees20,15913,95244%
# Payroll customers3,9332,82439%
KEY YEAR-ON-YEAR PERFORMANCE HIGHLIGHTS FOR THE QUARTER
● Processing fee revenue up 44% to $581K
● Total recurring revenue up 36% to $612K
● Total employees paid through PaySauce up 44% to20,159
● Number of payroll business customers up 39% to3,933

For more information about the quarter results to30 June 2021, please contact
investor@paysauce.com .

ABOUT PAYSAUCE
PaySauce is a SaaS fintech platform providing solutionsfor people at work. We
give employers the technology to digitally onboard,pay and manage employees
from any device. Our platform includes rosters, mobiletimesheets, payroll
calculations, banking integration,automated payments,PAYE filing, labour
costing, automated general ledger entries and digitalemployment contracts.
www.paysauce.com